Put writing

Put writing 101
Many investors automatically feel uncomfortable whenever the subject of options comes up.

Uncovered Put writing
A short put option position in which the writer does not have a corresponding short position in the underlying security or has not deposited, in a cash account,
Under the belt
Long position in a stock.

Call writing and put writing are popular income strategies employed by certain option traders. They're popular because they're relatively simple strategies and, when successful, can produce some great cash flow returns.

Naked writer
See Uncovered call writing and Uncovered put writing.
Narrow-Based
Generally referring to an index, it indicates that the index is composed of only a few stocks, generally in a specific industry group. See also broad-based.

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Credit Spreads / Equity Put Writing
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Naked Equity Call Writing / Naked Index Put & Call Writing ...

the underlying shares may be insufficient to pay out the dividend income for both the preferred and capital shares. In order to produce more income, split share corporations will sometimes employ covered call writing and cash-covered put writing.

holds cash or a cash-equivalent investment that is sufficient to pay for the purchase of the underlying security if the put purchaser decides to exercise the contract at expiration and sell it to the put writer. Also called covered put writing.

See also: Option, Put, Sell, Options, Market